Lesson Plan

Loan Amortization - Mortgage

Curated and Reviewed by Lesson Planet

When you buy a home for $100,000, you pay $100,000—right?  On the list of important things for individuals to understand, the lesson plan presents the concept of interest rates and loan amortization using spreadsheets and online sources. Through hands-on calculations, they begin to grasp the concept of compound interest while looking at the long-term financial ramifications of buying a home.

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CCSS: Adaptable
Instructional Ideas
  • Split the class into groups to work on the amortization table to assist learners who have difficulty understanding
  • Open the lesson by showing how much homes are selling for in your area while introducing the concept of interest rates
Classroom Considerations
  • Teacher may need to make hard copies of the Excel spreadsheet for use in the assignment 
  • Requires online access to complete the lesson
Pros
  • Resource provides link to mortgage calculator to use in lesson
  • Provides mortgage amortization template link to help with the spreadsheet
Cons
  • None